Bankruptcy for G,M, and Chrysler Possible
The Chief Executive Officer of General Motors said that bankruptcy is "more probable" now that the Obama administration rejected their restructuring plans, the New York Times and MSNBC reported.
On Monday Obama gave G.M., 60 days to come up with a better plan, and 30 days for Chrysler to partner with Fiat.
The new C.E.O., of G.M., Frederick A. Henderson, said that if a new plan is not created the company with have to file for bankruptcy protection.
Henderson said that he wants to avoid this, and G.M., will continue closing factories and offering buyouts to employees. With sales down 51 percent in January and February those cost cutting measures have been a way to stay away from total collapse.
To build customer confidence G.M., introduced G.M., Total Confidence. This allows customers who lost their jobs to have their monthly payments covered for up to $500 by G.M. Ford introduced a similar program called the Ford Advantage Plan.
The New York Times: http://www.nytimes.com/2009/04/06/business/06talk.html?_r=1&dbk